What the One Big Beautiful Bill Act Means for Property Owners
Tabitha Bruner August 30, 2025
Tabitha Bruner August 30, 2025
On July 4, 2025, the One Big Beautiful Bill Act was signed into law. The bill makes some tax provisions permanent, changes limits on others, and phases out certain incentives. Whether you own a home, rental property, or commercial building, here’s a clear overview of what’s inside and how it could affect you.
Private Mortgage Insurance (PMI) and FHA premiums are now permanently deductible if you itemize. Keep in mind, itemizing only makes sense if your deductions exceed the 2025 standard deduction ($15,750 for individuals, $31,500 for joint filers).
Mortgage interest deductions are still allowed for up to $750,000 in loans and are now permanent.
State and Local Tax (SALT) deduction cap has increased from $10,000 to $40,000. This includes property taxes. The higher cap phases out for incomes above $500,000 and will expire in 2029.
No new federal down payment assistance or first-time homebuyer credits were included in this law. Buyers should look to local and state programs, as well as employer-based options, for closing cost or down payment support.
Home energy tax credits are being phased out. The 30% Residential Clean Energy Credit for solar panels will end after December 31, 2025, unless your system is installed by then. Credits for energy-efficient upgrades like insulation and heat pump water heaters will also expire at the close of 2025.
100% bonus depreciation is now permanent for qualifying property placed in service on or after January 19, 2025.
20% Qualified Business Income (QBI) deduction is now permanent, with updated income phase-out thresholds ($75,000 single, $150,000 joint).
Opportunity Zone tax incentives are now permanent, with rolling 10-year designations starting January 1, 2027. Benefits have also been expanded, especially in rural zones.
Section 179D (energy-efficient commercial building deduction) expires June 30, 2026. It allows up to $5.81 per square foot in deductions, but projects must begin before that date.
Section 45L (energy-efficient home credit) is extended through June 30, 2026. It provides up to $5,000 per qualifying home or unit. Homes must be purchased or leased before that date. Builders who completed qualifying homes in 2022 may still be able to claim the credit retroactively by amending prior tax returns.
If you’re a homeowner: Review whether itemizing makes sense based on your mortgage interest, insurance, and property tax amounts. If you’ve been thinking about solar or energy-saving upgrades, plan installation before the end of 2025 to lock in existing credits.
If you’re a homebuyer: Since no new federal down payment or tax credits were included, research local programs that may offer grants or assistance.
If you’re a commercial property owner or developer: Consider accelerating construction or energy-efficiency projects to take advantage of 179D and 45L before they expire.